Talks between the UK government and China-based Jingye Group, the owner of British Steel, have hit a standstill over the future of the Scunthorpe steelworks, according to a BBC report.
Ministers accuse Jingye of demanding “hundreds of millions” in taxpayer money to transfer ownership — a figure they say far exceeds the company’s real value. The deadlock has raised fresh concerns about the fate of thousands of jobs and the country’s last blast furnaces.
Government Control but No Takeover
In April, the UK government took temporary control of British Steel to prevent the closure of two blast furnaces at the Scunthorpe site.
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Full nationalization was considered but avoided, as ministers hoped Jingye would transfer ownership for a nominal fee.
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British Steel remains officially owned by Jingye Group, with nationalization seen as a last resort due to fears of deterring foreign investment.
Failed Support Package
Back in March, British Steel began the consultation process for closing the blast furnaces after Jingye rejected a £500 million support package from the UK government.
Next Steps in Negotiations
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Business Secretary Jonathan Reynolds is expected to join talks in September.
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Officials hope to push Jingye toward a “more realistic” valuation.
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Until the dispute is settled, no new commercial buyer can step in.
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Some insiders suggest another parliamentary process may be required for a full takeover.
VietnamSteel by Hoa Sen Group
